Authorised Firmmust comply with those requirements in GEN Rules 5.3.21 and 5.3.22 when outsourcing functions or activities. In relation to Funds, there are additional outsourcing and delegation requirements applicable for Fund Managersand Trusteesin section 8.12 of the CIR module.
DFSArequires an Authorised Firmto notify it of any material outsourcing arrangements. An outsourcing arrangement would be considered to be material if it is a service of such importance that weakness or failure of the service would cast serious doubt on the Authorised Firm'scontinuing ability to remain fit and proper or comply with applicable Laws and Rules.
The outsourcing of functions or activities does not absolve management or
Governing Bodyof responsibility and accountability for ensuring proper administration and execution of these functions or activities.